Report 2013-046 Recommendation 63 Responses

Report 2013-046: Cafeteria Funds: Local Education Agencies Generally Use the Funds for Appropriate Purposes (Release Date: February 2014)

Recommendation #63 To: Education, Department of

To ensure that the spending plans Local Education Agencies (LEAs) create to eliminate excess net cash resources in their cafeteria funds are adequate, effective, and fully executed, the California Department of Education should, by July 1, 2015, make adjustments in the rate of reimbursement to an LEA under the child nutrition programs if that LEA cannot eliminate its entire excess net cash resources within a defined time frame.

Annual Follow-Up Agency Response From August 2015

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Based on our review of a selection of LEA's spending plans, the spending plans, if followed, will eliminate the excess net cash resources within a defined time frame. Consequently, CDE did not have a need to, nor did it, adjust any of the LEA's rates of reimbursements.

1-Year Agency Response

Commencing July 1, 2015, the CDE will annually require LEAs that report excess NCRs to develop or revise existing spending plans or budget agreements as needed. This will ensure LEA compliance with federal cafeteria fund limitations; if needed, CDE will take further action on a case-by-case basis.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

If an LEA is not successful in eliminating its entire excess net cash resources within a specified time frame, the CDE will take further action on a case-by-case basis, including: (1) holding the LEAs' claims for reimbursement until the excess balances are appropriately reduced, or (2) reducing the LEAs' future state meal reimbursement rates.

California State Auditor's Assessment of 6-Month Status: Pending

All Recommendations in 2013-046

Agency responses received are posted verbatim.